Arla Foods, a global dairy leader, will reconfigure its ARINCO facility to focus on ingredients production, ending its B2B Early Life Nutrition business and impacting 170 jobs in the process.
Arla Foods, a leading global dairy company headquartered in Denmark, is set to significantly expand its ingredients division. Its subsidiary, Arla Foods Ingredients (AFI), which specializes in premium ingredients for early life nutrition, clinical nutrition, and sports nutrition, will see a major shift in its operations. To meet growing demand and enhance production capabilities, Arla has announced plans to transform its ARINCO facility in Videbæk, Denmark, into a dedicated site for ingredients production.
Expansion Strategy
AFI is poised for growth as the ARINCO facility’s new role aligns with Arla’s ambitious plans to strengthen its global position in the ingredients sector. Currently, ARINCO produces not only ingredients but also milk powder for AFI’s Early Life Nutrition (ELN) business and Arla’s branded ELN products. However, the B2B segment of ELN at ARINCO will be phased out over the next 19 months, although the branded ELN business will continue to expand.
Strategic Partnership
Arla has entered a strategic partnership with French cooperative Sodiaal to enhance its ELN operations, particularly in China. Sodiaal will handle all of Arla’s future ELN production needs in China and other markets, leveraging both companies’ integrated supply chains and similar production technologies to support Arla’s branded ELN business.
Impact and Transition
The shift to a dedicated ingredients production site at ARINCO will create additional capacity for AFI’s growing needs. However, this transition will impact approximately 170 job positions at ARINCO and the Arla Foods Ingredients headquarters in Aarhus. Arla is committed to supporting its employees through this period by offering retraining and internal job opportunities, although redundancies are expected.
During the 19-month transition period, Arla will work closely with customers to ensure continuity of supply before discontinuing ELN production at ARINCO by the end of Q1 2026.
